April 2024 changes in employment law

April is the time of the new financial year, a time when (usually at least!) spring has sprung, and a time when employers and HR professionals are updating their guidance and advice on all things employment law.

Here is a run-down of just some of the latest developments which came into force on 6th April 2024.

The statutory cap on a week’s pay (for the purposes of calculating a redundancy payment or the basic award in unfair dismissal claims) is now £700.

The Vento bands have also been updated.  The Vento bands are used as a guidance to assess how much compensation should be awarded in discrimination claims in the employment Tribunal.  These are now: 

  • a lower band of £1,200 to £11,700 (less serious cases);
  • a middle band of £11,700 to £35,200 (cases that do not merit an award in the upper band); and
  • an upper band of £35,200 to £58,700 (the most serious cases), with the most exceptional cases capable of exceeding £58,700.

Holiday pay must now be calculated using the averaged total remuneration (including commission and bonuses).

It’s now a day one right to request flexible working (and 2 requests can be made per year).

Redundancy protection is being extended to pregnant employees and those recently returning from family leave.

Employees with caring responsibilities will have the right to take up to one week’s unpaid leave during a year to provide or arrange care for a dependant.


For any assistance with how these work in practice or to ensure you aren’t falling foul of new legislation, please contact our Head of Employment, Ilinca Mardarescu on imardarescu@astonbond.co.uk or call our office.

Part-year workers holiday pay entitlement

In the Supreme Court case of Harpur Trust v Brazel (2022) UKSC 21, an important appeal
was raised on the issue of statutory leave requirements for part-year workers. To clarify
part-year employees are those with ongoing contracts who work a variety of hours only
during certain weeks of the year.

The facts were that Mrs Brazel, a music teacher at a school, run by the Harpur Trust, was
employed on a permanent contract but for term times only. Mrs Brazel was accepted as a
worker by Harpur Trust, and as such, she was entitled to 5.6 weeks of paid annual leave per
year, provided she took her annual leave during the school holidays, when she was not
required to teach. However, Harpur Trust argued that to account for the weeks not worked,
a part-year employees holiday entitlement needed to be further pro-rated. This was the
reasoning behind Harpur Trust changing its way of calculating her holiday pay to the
percentage method of calculating her pay according to 12.07 of her usual pay. The new
calculation meant that Mrs Brazel was essentially being paid less than she had previously
received.

The Supreme Court rejected the trust’s claims and confirmed that part-year employees,
regardless of their working hours and regardless of the proportion of each year they work,
are fully entitled to the 5.6 weeks of vacation time. Additionally, their holiday pay must be
based on the calendar week method of averaging a week’s working hours. Since there was
no provision in the Working Time Regulation of 1998 allowing for pro-rated holiday
entitlement for part-year employees.

The Supreme Court acknowledged that this approach favoured workers who work unusual
hours, but it does not result in an irrational outcome that necessitates a complete overhaul
of the legal framework. Furthermore, the Supreme Court found several flaws in the Harpur
Trust’s proposed methods of pro-rating a part-time worker, which would have necessitated
complicated calculations, requiring all employers to keep detailed records of every hour
worked, even if they are not paid on an hourly basis.

Thus, the decision only impacts workers engaged in permanent part-year contracts.
Particularly the education sector, where many individuals work term time only, e.g.,
teachers with irregular hours or those in the education sectors. As a result of this Supreme
Court ruling, potentially employers could face claims of unlawful deduction from wages,
which could go back up to two years.

It should be noted that the average casual worker on a zero-hour contract will be
unaffected, as they will only be entitled to paid vacation based on the number of weeks
worked. Moreover, part-time employees who work 52 weeks a year but for fewer hours or
days than full-time employees can also have their vacation calculated pro rata. Furthermore,
it does not affect fixed-term employees, whose holidays will continue to be calculated pro-
rata for the duration of the contract.

Europe takes on the tech giants

Last week, the European Union passed two new laws to regulate big tech companies: the Digital Markets Act and the Digital Services Act. This new legislation represent arguably the biggest set of changes to the online world since the GDPR laws.

 

Fortunately, unlike the GDPR changes, these do not require substantial efforts from all businesses in the way they operate.  Crucially, the Acts are only directly relevant to companies whose main services are provided online.  Additionally, small tech companies will be spared the costliest of obligations, with only the largest companies (with a user base of at least 45 million across Europe) having to deal with the toughest regulations. These companies are identified in the Digital Markets Act as ‘Gatekeepers’, which often have interlocking services that work together to prevent users from branching out to other potential service providers, and which are capable of easily crushing smaller competitors in the marketplace. Think the likes of Amazon, Apple, Google and Meta.

 

At this point you might be thinking, “Ok that’s great, but why does it affect me? We’re no longer in the EU”. That is correct, and big tech companies are not going to start applying the rules to themselves voluntarily outside the EU.  However, it is likely that similar laws will be passed in a number of countries around the world following the example of Europe. This is what happened in many cases following GDPR. At this stage, it is impossible to know exactly what form a UK version of the new legislation may take, or when it will go through parliament, but it is likely to be similar to the EU version.

 

So, what do we have to look forward to?

 

For starters, the measures promise a safer and more pleasant experience for users; making it easier to report misinformation or dishonest products being sold online. They also make it easier to use services from other providers which may provide users with better value or a better experience. This includes being able to uninstall pre-installed software or apps on devices should they wish to.

 

For businesses, the main benefits are going to be felt by small enterprises and start-ups, as they are exempt from costs and are protected from unfair anti-competitive practices. They also benefit from the legal certainty of how Gatekeeper companies will interact with them and the terms on which they can make use of their services. This means that a business that allows users to do something as simple as creating a login using Google or Facebook could stand to benefit from the Acts.  Another benefit is the proposed system which will allow businesses to flag illegal content and goods that affect their rights, including their intellectual property.

 

Clearly, there will be a cost to all this. But it is one that is effectively borne by some of the largest and wealthiest companies in the world. In exchange, we get a system that will theoretically promote innovation, user choice, and fairer business practices. As for whether the Digital Market Act and Digital Services Act live up to these ambitions or not remains to be seen.  Undoubtedly however, the Gatekeeper companies most affected by these regulations will not simply accept these changes quietly.  We can anticipate years of litigation between them and the EU which will test to see how far the regulations can be pushed, the results of which will undoubtedly shape future legislation in this sector all over the world.

Change ahead – Reforms on Pre-Action Conduct

What you need to do before you take matters to court

Before anyone can bring a claim to the UK Civil Courts, there are certain steps that must be taken to demonstrate to the court that you have taken reasonable action to try and resolve things yourself. These steps are called Pre-Action Protocols and are intended to ‘’explain the conduct and set out the steps the court would normally expect parties to take before commencing proceedings’’.

If your dispute has no case-specific Pre-Action Protocol, then the Practice Direction Pre-action Conduct applies. There are specific Pre-Action Protocols for various types of claims such as:

  • Pre-Action Protocol for Personal Injury Claims
  • Pre-Action Protocol for the Construction and Engineering Disputes

 

What happens if I haven’t completed these steps?

There can potentially be serious consequences for both claimants and defendants for failing to comply with the Pre-action Conduct and Protocols or any relevant protocol to a claim. These can include the Court not allowing your claim to progress further until there has been compliance, and you may also incur additional cost penalties.

 

The future of Pre-Action Protocols

In November 2021 the Civil Justice council (CJC) considered a review of the Pre-Action Protocols, thinking about the role Pre-Action Protocols should play in the civil justice system in the 2020s particularly in a justice system which is increasingly digitalising.

Three major reforms considered are:

  • Making all Pre-Action Protocols available online via portals

This would also include ensuring the portals are electronically joined up to the relevant court so that non-confidential pre-action exchanges, including pre-action letters of claim and replies would be accessible to the court if the matter progresses to litigation.

Linking online portals on pre-action compliance to digital court process will allow the courts to have access to the pre-action correspondence and documents exchanged between parties and may also be able to provide parties with a secure platform in which they can freely explore settlement options.

 

  • Introducing a good faith obligation

This would try to resolve or narrow the dispute at the pre-action stage. Options for a good faith obligation could include engaging in formal alternative dispute resolution (ADR) processes, informal negotiations between the parties, or formal settlement offers.

Does the introduction of compulsory ADR conflict with Article 6 (the right to a fair trial) of the European Convention on Human Rights? The future obligation of compulsory ADR must provide a balance of being able to effectively resolve disputes with the option of being able to return to the normal court process. The CJC believe the civil justice system is far off from being able to offer regulated and timely ADR processed to all prospective litigants, and until they are available, any good faith obligation to resolve a pre-litigation dispute should be non-regulatory.

 

  • Formally recognising compliance would be mandatory with Pre-Action Protocols

Compliance could become mandatory except in urgent cases where immediate court action is necessary.

Extending the courts power for compliance issues will enable a more consistent and timely approach to non-compliance with Pre-Action Protocols. For example, the current Practice Direction on Pre-Action Protocol expressly gives the court power when considering a costs order to consider if there has been an unreasonable offer to refuse a form of ADR. However, there is inconsistency case by case in the way in which the courts apply this power.

The CJC have suggested formalising the process for raising compliance issues by introducing a separate directions questionnaire on compliance or requiring parties to apply to the court for sanctions to be imposed for non-compliance. It has also been suggested a decision by the courts on whether to impose a sanction should be taken at the start of proceedings rather than the end.

 

Revolutionary or evolutionary?

The reforms build on the existing rules and procedures set out in the current Pre-Action Protocols. However, the proposed reforms attempt to provide more concrete guidance, consistency and accessibility with the integration of technology for pre-litigation matters. Encouragement of early exchange of information and settlement is greater than before with the mandatory use of online protocol portals and a form of ADR before a claim could be bought.

The Tribunal’s failure to take judicial notice of childcare disparity

In the judgement of Dobson v North Cumbria NHS Trust, the Employment Appeal Tribunal (EAT) held that the Employment Tribunal (ET) failed to consider that women, because of their childcare responsibilities, are less likely to be able to accommodate flexible working, including working on the weekends, than men. The EAT referred to this as “childcare disparity” and accepted that the burden of childcare falls disproportionately on women, affecting their ability to adapt to certain working patterns.

After twenty years, the courts and tribunals have taken judicial notice of this disparity and the EAT concluded that the childcare disparity should have been accepted by the tribunal in Dobson v North Cumbria.

Mrs Dobson worked for the North Cumbria Integrated Care NHS Foundation Trust as a community trust. She was working two consistent days a week, but following a review, she was asked to work flexibly, including at weekends. Mrs Dobson was unable to commit to this arrangement because of her caring responsibilities for her three children, two of whom are disabled.

Mrs Dobson’s employment was terminated, and she subsequently bought indirect sex discrimination, unfair dismissal, and victimisation claims. The ET dismissed her claims but she subsequently appealed with the help of Working Families, who intervened and raised the issue of whether the ET should have taken judicial notice of childcare disparity between men and women.

Recently, the EAT found that the ET had erred in limiting the pool for comparison to the team in which the claimant worked and instead confirmed the appropriate pool was all community nurses across the Trust. The EAT also found the ET to have erred in finding no group advantage.  The ET should have taken judicial notice of the fact that women, because of their childcare responsibilities, are less likely to be able to accommodate flexible working patterns. The EAT’s conclusions meant that the ET’s decision needed to be reconsidered.

A similar decision was made by the EAT in Hughes v Progressive Support Limited where Mrs Hughes’s employment was not terminated, but her employer said that her contract would be changed to a zero-hours contract if she did not work the hours her employer requested. The EAT found there was indirect sex discrimination if an employer asks an employee to work certain hours, regardless of their childcare responsibilities, even if no penalty was imposed against the employee.

The recent case law makes it clear that certain working patterns and associated rules imposed by employers can disproportionately impact certain groups.  Employers will now need to be conscious of how the issue of childcare disparity can (disproportionately) affect certain groups of its employees.

For any assistance with this issue or any employment-related matter, please contact our Head of Employment Ilinca Mardarescu.

Does philosophical belief justify gender discrimination?

Gender critical theory, the idea that sex should not be conflated with gender identity, is now protected as a philosophical belief under s10 of the Equality Act. The implications this has for the workplace resides on whether beliefs that can be considered discriminatory against specific groups, can be legally protected as a “characteristic”.

Back in 2019, Maya Forstater claims she was unfairly discriminated against by her workplace, the thinktank Center for Global Development (CGD), over tweets she made in response to the proposed reforms to the Gender Recognition Act. Employees at the CGD complained that her tweets were “transphobic”, and her contract was not renewed.

The first Tribunal ruled that gender-critical beliefs do not satisfy the Grainger criterion, as these beliefs do not respect human dignity or the “enormous pain that can be caused by misgendering” and are therefore excluded from protection.

Despite this, it was allowed to be appealed to the EAT, believing that the first Tribunal had made an error in its application of Grainger. The criteria will generally protect all philosophical beliefs unless they cross a line into something akin to fascism. With this, the EAT judged that whilst Ms Forstater holds views that may be considered offensive to some, they would not be excluded from protection under the Equality Act. According to the Employment Appeal Tribunal’s final judgement, beliefs that honestly express personal beliefs without actively inciting hate or harassment must be “worthy of respect in a democratic society”.

However, it stressed that transgender people still have equal rights in the workplace, as the ruling has not “expressed any view on the merits of either side of the transgender debate”. Anything crossing the line into hate speech can be justifiably restricted under Article 9(2) or Article 10(2) of the European Convention on Human Rights.

The difference between holding a belief and expressing it raises several questions as to whether the specific philosophy is dangerous to specific groups. The EAT judgement maintained that intentionally misgendering someone with the intention to cause offence is still prohibited and it is not giving those with gender-critical beliefs impunity.

Therefore, whilst this may be seen as a lack of progress for those campaigning for better workplace protection for trans people, their rights are still equally upheld under the Equality Act.  For an employer, finding the right balance between two opposing rights such as these will be the real a challenge.

 

For any assistance with this issue or any employment-related matter, please contact our Head of Employment Ilinca Mardarescu

If you’re a carer, do you know your rights?

The Care Act 2014 recognises that supporting carers is of equal importance to supporting the people they care for. Therefore, since the implementation of this Act, carers rights have been put on a similar footing to the rights of disabled adults. 

A carer is someone who gives support and care to an adult who is their partner, child, friend or another close relative. Under the Act, the local authority must consider the well-being of the carer and consider whether there are steps it can take to prevent, reduce or delay any needs the carer has. 

Assessment of a carers needs

S 10 of the Care Act 2014 provides that where it appears to a local authority that a carer may have needs for support now or in the future, the local authority has a duty to carry out an assessment of those needs. Neither the carers or the disabled adult’s financial resources or the level of need of support will be taken into account in making the assessment. It is still possible to have an assessment if the person that is being cared for is not receiving local authority support, or if the person being cared for doesn’t live in the same local authority area as the carer. 

How does the assessment work? 

Your local authority must offer advice and support regarding carers right to an assessment to everyone in their local area. 

  • Most local authorities will require the carer to complete an online self-assessment. However, if required this can be over the telephone, on paper, or face to face instead.
  • The assessment will be looked at by a trained person from the local authority or another organisation so they can understand the carers needs and how they can be met.

The eligibility criteria

  • The local authority will then apply eligibility criteria to the needs of the carers needs to see which ones are eligible for support. 
  • The local authority will need to understand whether your mental or physical health are affected now, or are at risk of being affected in the future. 
  • They will also look at whether you are unable to look after children, care for other people who want you to, look after your home, prepare food and look after your diet, have personal relationships, take part in education, work or volunteering, or find time for social activities. If these factors combined are impacting your wellbeing you may be eligible for support. 
  • After applying the eligibility criteria has been applied, the local authority carries out a financial assessment which will help them to provide the necessary support for the carer. 

How can the local authority support a carer’s needs? 

If the assessment shows that the carer has eligible needs then the local authority will implement a support plan which identifies what the carer’s needs are and how they will be met. The support plan is an agreement between the carer and the local authority, and will generally be in the form of direct payments to the carer who can then arrange and pay for their own support. The support plan is usually reviewed 6-8 weeks after it is agreed, and then at-least once every 12 months. 

Young Carers 

Section 63 and 64 of the Care Act 2014 provides that where a young carer is likely to have needs for support after turning 18, the local authority must carry out a ‘young carer’s assessment’. Within this, the local authority considers whether the young person is willing to provide care beyond the age of 18, the amount that the young carer would like to work or participate in education and the impact that providing care may have on the carer. 

Once the young carer’s assessment has been carried out, the local authority must indicate whether the young carer is likely to meet the eligibility criteria once they are 18. They must also offer advice and information about meeting or reducing the young carer’s needs for support, or about preventing or delaying further needs which may develop.

Parent carers of children

The Children and Families Act 2014 gives parent carer’s the right to a stand-alone assessment and right to services. This assessment is called a ‘parent carer’s needs assessment’; the local authority must assess whether that parent has support needs. Once the local authority has done this and assessed what the needs are they must identify the support and services available to help the carer and their family. 

For more information on the rights of carer’s, get in touch with our supportive team to help. 

Sources: https://www.rethink.org/advice-and-information/carers-hub/carers-assessment-under-the-care-act-2014/

https://imprivateclient.passle.net/post/102gzyj/a-whistle-stop-tour-of-carers-rights

Shielding formally ceases on 1st April

As part of the Government’s roadmap out of lockdown (and in part due to the success of the vaccination programme so far) as of 1st April 2021 anyone who is classified as clinically vulnerable will receive a letter confirming they are no longer being advised to shield.

All those that have previously received a shielding letter will now be contacted again to advise that they no longer need to shield.  Public Health England has issued new guidance to those categorised as extremely clinically vulnerable which includes advice on social distancing, hygiene, work and travel.  The advice will be to continue taking precautions generally but, crucially, will state;

“Everyone is currently advised to work from home where possible. If you cannot work from home, you should now go to work.”

Importantly, as of 1st April 2021, both Statutory Sick Pay (SSP) and Employment and Support Allowance (ESA) will no longer be available on the grounds of anyone shielding.

The extended Furlough scheme will be available where employees are eligible but this is purely at the discretion of the Employer.

For employees who are still worried and concerned about going in to work, this will no doubt increase anxiety.  Employers have a duty of care towards their employees and need to ensure their health and safety where possible.  No doubt this will be a contentious matter and is likely to lead to an increase in claims being made unless handled properly.

For advice on how to deal with the transition back to work for those that have been off for a while, contact our Head of Employment, Ilinca Mardarescu.

Supreme Court rules Sleepover Shifts are not covered by the National Minimum Wage

On Friday 19th March, the Supreme Court handed down its long-awaited decision in the case of Royal Mencap Society v Tomlinson-Blake.

The findings of this case are important for the care industry in particular, as the Supreme Court has held that employees who are expected to work ‘sleep in shifts’ do not earn the National Minimum Wage (NMW) for time spent asleep on the job.

The 32-page judgment highlights that a sleep-in worker who is “merely present” is treated as not working for the purposes of calculating pay under the NMW regulations. The argument that a worker must be available at such hours does not mean they will be expected to work during these hours. 

In the Court of Appeal, the Claimant had argued that as a Care Worker, she has to have a “listening ear.” Like in the Court of Appeal, the Supreme Court also rejected this argument as they concluded that having a “listening ear” does not amount to “working” for NMW purposes.

One of the many deciding factors, in this case, was the fact the judges gave weight to the Low Pay Commission’s recommendations that sleep-in workers should be paid an allowance rather than the NMW unless they are awake for work purposes.

This decision will no doubt come as a big relief to local authorities and employers in the care industry, particularly due to the effects of the COVID-19 pandemic on this sector. It spares the care sector of the risk of paying about £400 million in back pay if time spent sleeping was found to be working time.  

Up to now, the case of British Nursing v HMRC had indicated that sleep-in shifts could qualify for the national minimum wage. Although all of the judges in this case agreed the British Nursing v HMRC case was not a correct interpretation of the law (albeit they could not agree on the reasons). 

Undoubtedly, this judgment will be disappointing to unions and workers who were campaigning for better wages and conditions in an already low-paid sector.  We shall have to wait to see whether the Government will decide to intervene to change the sleep-in policy across the sector. 

Uber drivers are ‘workers’

The Supreme Court handed down its decision in Uber v Aslam last week which confirmed that Uber drivers should be classed as workers and not self-employed.  This decision means that thousands of Uber drivers will be entitled to basic rights which include access to minimum wage, rest breaks, and paid holidays.

The case initially commenced in 2016 and has traveled up through the courts being appealed (unsurprisingly) by Uber at every turn.  The Supreme Court however is the highest court in Britain meaning this decision is the final say on the matter. 

The flood gates are now open for all Uber drivers to seek compensation which could lead to Uber facing a large compensation bill.

One of the main arguments put forward by Uber is that its drivers are not workers because the drivers can choose the hours they work.

The ruling concluded that Uber must consider its drivers as workers from the moment they log on to the app and are available to work in the area until they log off the app. 

The Supreme Court decided that because of the factors listed below, the drivers were in a position of control and subordination to Uber.

  • Uber sets fares which means they determine and control how much drivers earn
  • Uber sets the terms of the driver’s conditions and so the drivers have no input
  • Uber can penalize or terminate driver’s contracts if the drivers reject too many requests for rides and so the drivers are constrained by Uber
  • Uber monitors drivers’ service through a star rating and they can end their employer-employee relationship after warnings and the service does not improve.

The decision could well have huge ramifications not just for Uber but other industries which rely on a form of imposed “self-employed” contracts.  The case will no doubt prompt a shift in the way these companies work in the future and the face of the gig economy may well be affected.   For now, those Uber drivers not a party to this litigation will have to either litigate themselves and/or at least threaten to litigate in order to recover what is owed to them.   Unions may well assist also but it is unlikely that Uber will automatically rectify matters and give drivers the money they are owed.

For assistance with this or any employment-related query, please contact our Head of Employment, Ilinca Mardarescu.

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